* Gaming sector hit after China halts game license approvals
* Turkish crisis differs from past emerging market ones - analysts
* Falls by SoftBank, Fanuc hurt the index
* Exporters slip too, in spite of yen weakness
TOKYO, Aug 15 (Reuters) - Japan's Nikkei dropped on Wednesday morning as profit-taking hit after the previous day's sharp gains, though the drops were limited as the yen's weakness against the dollar aided investor sentiment.
Gaming sector stocks fell due to concerns over delays in new games releases in China, as Beijing halted approvals for licenses.
Nintendo Co tumbled 3.0 percent and was the second most traded stock by turnover, while Square Enix and Capcom Co Ltd, which developed "Monster Hunter: World," slid 2.6 percent and 2.7 percent, respectively.
The Nikkei share average ended 0.7 percent lower to 22,204.22, after soaring 2.3 percent - its biggest one-day percentage gain since March - on Tuesday.
Japanese stocks were volatile early this week. They were hurt by contagion fears after the Turkish lira plunged and investors fled to the safe-haven yen. A stronger yen reduces Japanese manufacturers' profits from abroad.
"We cannot be overly optimistic but the Turkish turmoil alone will not likely have a major impact on Japanese companies' shares," said Masashi Oda, general manager of the strategic investment department at Sumitomo Mitsui Trust Asset Management.
On Wednesday, profit-taking hit recent gainers among Japanese shares. Index heavyweights SoftBank Group and Fanuc Corp fell 2.6 percent and 1.8 percent, respectively.
Exporters were broadly lower, with Toyota Motor falling 0.7 percent and Honda Motor dropping 1.5 percent, while Panasonic Corp shedding 1.1 percent.
Suruga Bank tumbled 4.3 percent after it said an employee falsely canceled customers' accounts and used 165 million yen to lend to business partners.
The broader Topix declined 0.8 percent to 1,698.03. (Editing by Simon Cameron-Moore)